FX.co ★ Fundamental Analysis, January 10, 2011

Federal Reserve Chairman Ben Bernanke stated in his testimony in the Senate Budget committee that signs of a sustainable recovery are continuing to strengthen. He added, however, that he is still concerned over the slow recovery of the labor market, and warned that the deflation risk. In summary, a moderate improvement in the rate economic recovery exists in 2011 as compared to 2010, according to the chairman.

In the macroeconomic scale, the United States Department of Labor has reported last Friday that 103 thousand new jobs have been added to the American labor market in December, with the rate of unemployment dropping to 9.4%, the lowest point since May 2009. Economist predictions were for a sharper rise of 150 thousand jobs, but a more moderate decline in the unemployment ratings, to a level of 9.7%.

Index declines have been recorded this morning in the Asian stock markets, led by the stocks of the export sector, this due to the United States employment report and data regarding China's trade balance. The Hong Kong stock exchange declined by 0.2%, the Shanghai stock exchange retreated by 0.4%, the Seoul exchange dropped 0.5%, the Singapore exchange dropped by 0.1%, the Sydney exchange climbed 0.2%, while the Tokyo stock exchange is closed today due to holidays.

Analysts estimate the gold is expected to reach a level of 1,800 United States dollars per ounce of gold in 2011. Since gold is currently trading at 1,370 United States dollars per ounce, this constitutes a climb of over 30%.